Decoding Candlesticks: Unveiling the Price Story in Motion!

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Decoding Candlesticks: Unveiling the Price Story in Motion! 

Ever wondered what those moving rectangles in charts have to say about prices? 

#thread

What is Candlestick?

Imagine these rectangles in motion as storytellers of price movement. 

No need for fancy names; we’re shifting focus to body sizes and heights for a fresh perspective. Some have tiny bodies, while others are robust. The body size & % to full height matter.

Open of the Day: The opening price sets the stage.

It’s the result of news, events, & sentiment since the last close. 

Prices above or below the open often hint at the day’s bias.

Open of the Day: Romancing the Open!

Try not to sell in the first 15min of the day if the price is above the open.

Try not to Buy in the first 15min of the day if the price is below the open.

Close of the Day: 

The closing price wraps up the day’s journey. It’s the final outcome of all trading activity.

We may also decide on trades that can be carried forwarded to the next day based on the closing 15-minute session.

Known as Overnight Trades!

The last 15 min candle can be given the status of being equivalent to 30min or 15min candle.

Considering the kind of transactional activity of squaring up.

Understanding the Body: 

In a candle, you’ve got the Open and Close that contains the Body. 

Open and Close sit on opposite ends, and the Body fills the gap between them.

 The height of the body tells a tale, revealing insights about one directional momentum.

Anatomy of a Candle: 

Imagine a candlestick as a tiny human with legs (sticks), hands (wicks), and a body.

 The body’s like our body mass, the sticks act as legs, and the wicks are waving like hands. 

Sticks are beneath the body, while wicks are above.

Creating Parameters: 

We use Open, High, Low, and Close values to create essential measurements:

💠Candle Height

💠Body Height

💠The ratio of Body Height to Candle Height

Reading the Body Language: 

Candlesticks don’t just move; they communicate. 

A tall body suggests strong buying/selling pressure, while a short body indicates indecision.

The ratio of body height to candle height provides insights into market sentiment and potential shifts.

Candlesticks are your price movement interpreters

Next time you see those rectangles in motion, remember they’re narrating the price journey, revealing trends, sentiment, and potential market moves. 

Stay curious!

Thank you for reading!

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This thread offers a simplified view of candlestick basics. A thorough understanding is recommended for comprehensive analysis.